Haemonetics Corporation (HAE)

Payables turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cost of revenue	US$ in thousands	1,175,410	1,024,480	937,580	854,513	976,208
Payables	US$ in thousands	73,358	63,929	58,371	50,293	50,730
Payables turnover		16.02	16.03	16.06	16.99	19.24

March 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,175,410K ÷ $73,358K
= 16.02

Haemonetics Corporation's payables turnover has shown a slight decrease over the last five years, from 19.24 in March 2020 to 16.02 in March 2024. This indicates that the company is taking longer to pay off its suppliers relative to its cost of goods sold. A higher payables turnover ratio typically suggests that the company is managing its payables efficiently and is paying off its suppliers quickly. However, a decreasing trend in this ratio may signal a slower payment cycle, which can have implications for the company's cash flow management. It is important to further investigate the reasons behind this decline in payables turnover to assess the company's liquidity and supplier relationships.